Technical analysis: key levels for gold and crude

Gold breaks higher thanks to comments from Trump, while Brent continues to consolidate around the 76.4% retracement.

Gold figure
Source: Bloomberg

Trump sends Gold spiking higher

Gold managed to break through trendline resistance overnight, following confrontational comments from Trump in relation to North Korea. Crucially, we have also seen a break through $1265, thus negating the recent creation of lower highs and lower lows.

A push above $1271 would provide a strong confirmation of the bullish shift, with that level resting above the 76.4% retracement of the entire move lower from $1274. Keep an eye out for that $1268 Fibonacci resistance level. Today seems like a day of discovery, where a break above $1271 would point towards a bullish resurgence, while a move lower from here could see the selling pick up once more.

Brent sideways price action continues

Brent remains within a symmetrical triangle formation, coming off the back of a wider rally into the 76.4% retracement at $52.43.

A breakout from this pattern will provide the lead on where we go next, with an hourly close above $53.00 providing a bullish view, while an hourly close below $50.89 gives confidence of a downturn for Brent. Until then, consolidation reigns.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

Find an article

Find articles by writer